Senate Democratic leaders said Monday they soon will hold votes on two White House tax-cut proposals that reward small businesses that add workers and make new investments.
The plan calls for a 10 percent tax credit for businesses that increase payroll in 2012. With a maximum increase in eligible wages of $5 million per employer and the amount of the credit capped at $500,000, the benefit targets small businesses.
The other proposal would allow businesses to write off 100 percent of major purchases made this year. Typically, major purchases, such as large equipment or buildings, must be written off over many years.
Both proposals are included in President Obama’s current budget blueprint.
“The cut we provide is targeted to small businesses, not big corporations that are already racking in profits,” said Senate Majority Harry Reid, Nevada Democrat. “That is a key distinction how Democrats and Republicans approach this very important issue … Republican efforts are just camouflage handouts to the wealthiest in the America.”
Senate Democrats, who said they hope to bring the proposals to the chamber floor as a package within the next few weeks, baited Republicans to vote against it.
“It would be unfathomable to imagine that Senate Republicans in the Senate would try to block a tax cut aimed at business,” said Sen. Charles E. Schumer of New York, the chamber’s third-ranking Democrat.